OPEC agrees to extend oil production cuts – ANZ

Analysts at ANZ point out that as earlier signalled, OPEC and some non-OPEC countries agreed on an extension on production cuts for a further nine months in an attempt to counter strong US shale production and high global inventories.

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“But for the market, it was clearly a case of ‘buy the rumour, sell the fact’, with oil prices falling sharply. The market is also likely to have jumped on the fact that no new non-OPEC countries will be joining the pact and there was no plan to continue curbs further into 2018. As with any OPEC agreement, markets appear to be a little sceptical that it will actually be successful.”